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AVGO vs OTEX

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
OTEX
Open Text Corporation
NEUTRAL
Price
$23.12
Market Cap
$5.88B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
AVGO
68.48
OTEX
12.99
Forward P/E
AVGO
19.65
OTEX
5.25
P/B Ratio
AVGO
20.79
OTEX
1.42
P/S Ratio
AVGO
24.35
OTEX
1.14
EV/EBITDA
AVGO
46.0
OTEX
7.32

Profitability

Gross Margin
AVGO
76.73%
OTEX
76.23%
Operating Margin
AVGO
44.94%
OTEX
23.49%
Profit Margin
AVGO
36.57%
OTEX
8.42%
ROE
AVGO
33.37%
OTEX
10.55%
ROA
AVGO
10.66%
OTEX
4.87%

Growth

Revenue Growth
AVGO
29.5%
OTEX
-0.6%
Earnings Growth
AVGO
31.6%
OTEX
-23.9%

Financial Health

Debt/Equity
AVGO
0.83
OTEX
1.63
Current Ratio
AVGO
1.9
OTEX
0.94
Quick Ratio
AVGO
1.67
OTEX
0.82

Dividends

Dividend Yield
AVGO
0.74%
OTEX
4.89%
Payout Ratio
AVGO
47.17%
OTEX
62.87%

AI Verdict

AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)
OTEX NEUTRAL

OTEX presents a classic value trap profile: fundamentally cheap but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock currently trades below its Graham Number ($25.5), suggesting a defensive margin of safety. However, this is offset by alarming growth metrics, including a -23.90% YoY earnings decline and a technical trend score of 0/100. While the dividend yield is attractive, the combination of high debt (D/E 1.63) and poor liquidity (Current Ratio 0.94) warrants caution.

Strengths
Strong Gross Margins (76.23%) indicating high product value
Attractive Dividend Yield of 4.89% with a sustainable payout ratio
Very low Forward P/E (5.25) suggesting significant undervaluation relative to earnings
Risks
Negative YoY Earnings Growth (-23.90%) and stagnant revenue growth
Weak liquidity position with Current Ratio (0.94) and Quick Ratio (0.82) below 1.0
High leverage with a Debt/Equity ratio of 1.63

Compare Another Pair

AVGO vs OTEX: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Open Text Corporation (OTEX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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